GAO-03-675R 

United States General Accounting Office

Washington, DC 20548 

B-292187 

April 28, 2003 

The Honorable John McCain 

Chairman 

The Honorable Ernest F. Hollings 

Ranking Minority Member 

Committee on Commerce, Science, and Transportation 

United States Senate 

The Honorable W. J. “Billy” Tauzin 

Chairman 

The Honorable John D. Dingell 

Ranking Minority Member 

Committee on Energy and Commerce 

House of Representatives 

Subject: Department of Transportation, National Highway Traffic Safety 

Administration: Light Truck Average Fuel Economy Standards Model Years 

2005-2007

Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a 

major rule promulgated by the Department of Transportation, National Highway 

Traffic Safety Administration (NHTSA), entitled “Light Truck Average Fuel Economy 

Standards Model Years 2005-2007” (RIN: 2127-AI70). We received the rule on 

April 11, 2003. It was published in the Federal Register as a final rule on April 7, 

2003. 68 Fed. Reg. 16868. 

The final rule establishes corporate average fuel economy standards for light trucks. 

NHTSA is setting a standard of 21.0 miles per gallon (mpg) for model year (MY) 2005, 

21.6 mpg for MY 2006, and 22.2 mpg for MY 2007. 

We note the final rule has an announced effective date of May 5, 2003. The 

Congressional Review Act requires a 60-day delay in the effective date of a major 

rule from the date of publication in the Federal Register or receipt of the rule by 

Congress, whichever is later. 5 U.S.C. 801(a)(3)(A). The House of Representatives 

received the rule on April 11, 2003, and it was published in the Federal Register on 

April 7, 2003. Therefore, the rule does not have the required 60-day delay in its 

effective date for congressional review. We do note that the rule’s impact will not be 

felt until the 2005 model year. 
Page 2 GAO-03-675R 

Enclosed is our assessment of NHTSA’s compliance with the procedural steps 

required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule. 

Our review indicates that, with the exception of the 60-day delay in the effective 

date, NHTSA complied with the applicable requirements. 

If you have any questions about this report, please contact James W. Vickers, 

Assistant General Counsel, at (202) 512-8210. The official responsible for GAO 

evaluation work relating to the subject matter of the rule is Michael Gryszkowiec, 

Managing Director, Physical Infrastructure. Mr. Gryszkowiec can be reached at 

(202) 512-2834. 

 signed 

Kathleen E. Wannisky 

Managing Associate General Counsel 

Enclosure 

cc: Nancy Bell 

Attorney Advisor 

Office of the Chief Counsel 

Department of Transportation 
GAO-03-675R 

ENCLOSURE 

ANALYSIS UNDER 5 U.S.C. § 801(a)(1)(B)(i)-(iv) OF A MAJOR RULE 

ISSUED BY THE 

DEPARTMENT OF TRANSPORTATION, 

NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION 

ENTITLED 

"LIGHT TRUCK AVERAGE FUEL ECONOMY STANDARDS 

MODEL YEARS 2005-2007" 

(RIN: 2127-AI70) 

(i) Cost-benefit analysis

NHTSA performed a cost-benefit analysis for the final rule that showed the following 

results: 

Cost & Benefit Per Average Vehicle Over Its Lifetime

 Model Year Costs Benefits Net Benefits

 2005 $ 22 $ 29 $ 7 

 2006 67 83 16 

 2007 106 121 15 

Cost & Benefit Over the Lifetime of the Fleet

(in millions of year 2000 dollars) 

 2005 $170 $218 $ 48 

 2006 537 645 108 

 2007 862 955 93 

NHTSA’s analysis also shows that the lifetime fuel savings for model year 2005 will 

be 432 million gallons, 1,273 million gallons for model year 2006, and 1,892 million 

gallons for model year 2007. 

(ii) Agency actions relevant to the Regulatory Flexibility Act, 5 U.S.C. §§ 603-605, 

607, and 609

Because there are no single-stage, light truck manufacturers within the United States 

with 1,000 or fewer employees, NHTSA has certified that the final rule will not have a 

significant economic impact on a substantial number of small entities. 
Page 2 GAO-03-675R 

(iii) Agency actions relevant to sections 202-205 of the Unfunded Mandates Reform 

Act of 1995, 2 U.S.C. §§ 1532-1535

While the final rule does not contain an intergovernmental mandate, it will result in 

the expenditure of more than $100 million annually by vehicle manufacturers and/or 

their suppliers. NHTSA has concluded that the standards established by the final 

rule are the maximum feasible standards for the light-truck fleet for model years 

2005-2007, based on a balancing of statutory considerations. 

(iv) Other relevant information or requirements under acts and executive orders

Administrative Procedure Act, 5 U.S.C. §§ 551 et seq. 

The final rule was issued using the notice and comment procedures found at 5 U.S.C. 

553. On December 16, 2002, NHTSA published a Notice of Proposed Rulemaking in 

the Federal Register. 67 Fed. Reg. 77015. In response, more than 65,000 comments 

were received. 

Paperwork Reduction Act, 44 U.S.C. §§ 3501-3520 

The final rule does not contain any information collections that are subject to review 

by the Office of Management and Budget (OMB) under the Paperwork Reduction 

Act. 

Statutory authorization for the rule 

Section 32902(a) of title 49, United States Code, states that the Secretary of 

Transportation shall prescribe by regulation corporate average fuel economy 

standards for light trucks for each model year. 

Executive Order No. 12866 

The final rule was reviewed by OMB and found to be an “economically significant”

regulatory action under the order. 

Executive Order No. 13132 (Federalism) 

NHTSA has determined that the final rule does not have federalism implications 

under the order.